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Home My WebLink AboutJune 2013 - September 2013 The Strand Parking Structure AnnuDept. ID ED13-17 Page 1 of 2 Meeting Date: 6/17/2013 ,,�00011oaC� � _d CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 6/17/2013 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Bob Hall, Assistant City Manager SUBJECT: Approve the annual budget for The Strand Parking Structure pursuant to the Operating Agreement with CIM/Huntington, LLC., and appropriate funds to cover the operating expenditures Statement of Issue: The Strand Parking Structure ("Structure") is owned by the City of Huntington Beach and operated through an Operating Agreement between the City and CIM/Huntington LLC (CIM). Annually, CIM is required to submit a proposed budget, setting forth the expenditures and revenues to be approved by the City Council. Financial Impact: All revenue received from operations at The Strand Parking Structure is deposited into The Strand Parking Fund (Fund 712). This fund is a Trust and Agency fund used to record monies held by the City and CIM. Revenue from parking activity in the Structure is to be used for payment of monthly operating expenses, including a management fee. Recommended Action: A) Approve the The Strand Parking Budget for June 2013-September 2013, establishing estimated revenues and expenditures relating to The Strand parking structure; and, B) Appropriate $275,000 for expenditures (from The Strand Parking Revenue) from Fund 712 to Fiscal Year 2012/13 for payment of operating expenditures related to The Strand Parking Structure through the end of the City's fiscal year (September 2013). Alternative Action(s): Do not approve The Strand Parking Budget and provide direction to staff. Analysis: The Strand Parking Structure is operated by CIM through an Operating Agreement, which was approved in November 2008. The Operating Agreement sets forth the operation and use of the Structure. CIM selected LAZ Parking in 2012 to operate the structure and valet parking services to ensure that parking services continue to operate as efficiently as possible. Pursuant to the Operating Agreement, CIM must submit an annual budget by May 15 of each year. The budget includes an estimate of operating expenditures, as well as projected annual revenues. The Economic Development Department has met with CIM to review and discuss the budget. A majority of the buildings are now occupied, which has increased the parking expenditures and revenue. This action is necessary to establish appropriations for the City's FY 2012/13 budget in The Strand Parking Fund (Fund 712) in order to pay actual and projected operating expenditures for the period Item 18. - 1 HB -282- Dept. ID ED13-17 Page 2 of 2 Meeting Date: 6/17/2013 of June 1, 2013, to September 30, 2013. Pursuant to the Operating Agreement, all transient parking revenues are to be deposited into a City account on a daily basis. In addition, if valet rates are charged on a hotel guest's bill, revenues from these valet rates are deposited monthly into the same fund. The City's General Fund will receive a portion of the parking revenue deposited into Fund 712. The account must have a minimum of $75,000 in the fund balance to cover all incurred, yet unpaid, operating expenses. The monthly structure operating expenses are paid and if there is adequate revenue for the month, a management fee is paid to CIM. All revenues above the expenditures are shared between the City and CIM. The shared parking revenue is defined in the Operating Agreement as operating income generate by the Structure in excess of rates in the Main - Promenade Parking Structure. The revenues remaining after these conditions are met are transferred to the General Fund. In the current Fiscal Year, $250,000 (an increase from $150,000) will be transferred into the General Fund. Next Fiscal Year, it is proposed that revenues of $250,000 will be transferred to the General Fund. CIM has projected parking revenue through September 30, 2013, to be $682,000 and expenditures of approximately $200,000. The balance remaining between revenues and expenditures is used to pay the monthly operating expenditures outstanding for billings submitted for March through May 2013, as well as any additional operations and maintenance occurring between now and September 30. As part of the FY 2013/14 budget development process, an appropriate budget for revenue and expenditures will be adopted in The Strand Parking Fund. Environmental Status: Not applicable Strategic Plan Goal: Enhance economic development Attachment(s): 1. The Strand Parking Budget - 2013 HB -283- Item 18. - 2 ATTACHMENT #1 i� ---- I Item 18. - 3 HB -284- im- am LOy IJ 00 Ch i Location Period REVEf4tfE TOTAL January February March April May June July August September October November, December Hotel Valet 500,000.00 29,500.00 30,500.00 32,000:00 36,000.00 40,500.00 46,500.00 56,000.00 66,000.00 61,500.00 41,500.00 32,000.00 28,000.00 Transient Valet 50,000.00 3,050.00 3,200.00 3,600.00 4,050.00 4,650.00 5,600.00 6,600.00 6,150.00 4,150.00 3,200.00 2,800.00 2,950.00 Transient Self Park 650,000.00 26,650.00 28,600.00 40,300.00 46,150.00 66,950.00 85,800.00 111,800.00 99,450.00 60,450.00 35,100.00 23,400.00 25,350.00 Validations 54,000.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 Events 20o400.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 Monthly Parking 144,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 Total Income EXPENSE _1.418.400.00 77 0. OS .500.00 94.100,110 104.400. 0 1130.300.00 156.100.00 192.600.00 189.800.00 144.300.00 98.0NM MEMO �4 500 0 1 Labor Wages Garage 88,818.55 6,927.85 6,927.85 6,927.85 6,927.85 7,105.48 7,816.03 8,704.22 8,704.22 7,816.03 7,105.48 6,927.85 6,927.85 Wages Valet 148,012.52 11,544.98 11,544.98 11,544.98 11,544.98 11,841.00 13,025.10 14,505.23 14,505.23 13,025.10 11,841.00 11,544.98 11,544.98 Salary -Manager 51,500.00 4,291.66 4,291.66 4,291.66 4,291.66 4,291.66 4,291.66 4,291.66 4,291.66 4,291.66 4,291.66 4,291.66 4,291.66 Salary -Supervisor 8,400.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 Total Payroll 296,731.07 23,464.48 23,464.48 23,464.48 23,464.48 23,938.15 25,832.79 28,201.1 28,201.10 25,832.79 23,938.15 23,464.48 23,464.48 91,393.17 7,227.06 7,227.06 7,227.06 7,227.06 7,372.95 7,956.50 8,685.94 8,685.94 7,956.50 7,372.95 7,227.06 7,227.06 TF&B (30.8% of PR) Uniforms 1.7 Cents/PR $ 5,044.43 398.90 398.90 398.90 398.90 406.95 439.16 479.42 479.42 439.16 406.95 398.90 398.90 Sub -Total Labor 393.168.67 31.090.44 31.090.44 31.090.44 _31.090.44 31.718.04 34.228.45 37.366.46 37.366.46 34.228.45 31.718.04 31.090.44 31.090.44 Operating Operating Supplies 1,200.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Clalms 5,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 Office Supplies 600.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Bank Fees 600.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Credit Card Fees 11,89s.98 386.10 413.40 570.70 652.60 930.80 1,188.20 1,539.20 1,372.80 839.80 497.90 340.60 367.90 Phone & Internet 2,448.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 Signage 1,659.00 138.25 138.25 138.25 138.25 138.25 138.25 138.25 138.25 138.25 138.25 138.25 138.25 Revenue Control Maintenance 15,600.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 Sweeper/Wash/Janitorial 24,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 Insurance 17,730.00 967.50 1,006.25 1,176.25 1,305.00 1,628.75 1,951.25 2,407.50 2,372.50 1,803.75 1,225.00 955.00 931.25 Tickets / Key Cards 1,769.00 230.75 230.75 230.75 230.75 230.75 230.75 230.75 230.75 230.75 230.75 230.75 230.75 Accounting Fees 1,476.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 Mystery Shoppers 1,032.00 86.00 86.00 86.00 86.00 86.00 86.00 86.00 86.00 86.00 86.00 86.00 86.00 479.178.65 37.142.71 37.208.76 37.536.06 } 38.976.26 42.066.57 46.011.83 45.830.43 41.570.67 8.139.61 37 08 37.088.26 Operating Expense Operating Surplus 939.221.35 40.257.29 l,j 56.563.94 66�653.2g 91.323.74 �j4.033.43 146.588.17 143.989.57 102.729.33 59.860.39 39.315.29 37.411.74 Management{ Fees ,.. FA� ..�. t, Erw t..: ..� , a y�,„�- -, �;& �„ ',�g7 - �..:.. � /a��aa�..�ai �� 3 - Y-:. a. i i7 dig., ,i i -; �.. O'1"', 3','. ,, slv... ... ..> .. i�:. v e <' 5 z»-3 s5 i ... ,. ::d tire�a 7.g :, t l?'. a 11 gib. � Ha .. �< .. Total Expense 498.312.47 � 3 39.323.06 qQ 5� 43.642.92 47.624.45 47.423.05 43.183.29 39,75z.za 38,697.33 ,_ 39.700.891 ,IETiOPERATIN&PROFIT NOI M